In this article, we’ll discuss seven sales metrics you need to know.
Sales metrics matter more than you may have ever realized. Understanding sales metrics leads to understanding how successful you or your team has truly been. Understanding sales metrics means understanding which behaviors matter and which don’t, which methods of communication close sales and which don’t, and what sorts of sales lead to repeat customers and more sales and which lead to returns and negative word-of-mouth. Knowledge is power in sales, more so than any connections, any charisma, and any tactics–all of those things suffer in the absence of real knowledge. In this article, we’ll discuss seven sales metrics you need to know, metrics every sales person and team leader in the industry should be keeping an eye on.
By itself, sales cycle length doesn’t tell you much, but it’s nonetheless important to keep track of. Comparing the cycle lengths between top performers and troubled performers can be useful, as can noting how the cycle length changes when you tinker with process and tools.
A key stand-alone statistic when you’re looking to improve your bottom line. Understanding where sales come from (and where they don’t) is vital, whether you’re looking to focus on strong areas or develop weak ones. Hard data matters quite a bit, as sales people often perceive certain lead sources as more or less valuable than they truly are. Sales by Demographic and Sales by Product sales metrics have similar values and can be applied in similar ways.
Look for unexpected trends, on a team and individual level.
Most sales teams have less control over product than other areas of their sales, but you can still be mindful of the value of different products. If certain products sell easily, they can make a great lead-in for gaining customer investment. With advanced analytics, you can push products most likely to result in repeat sales early in your relationship with a prospect, instead of focusing on the best one-and-done products.
Repeat sales are key in most industries. The best sales people build relationships with their customers instead of aiming for a single closed sale. If your sales metrics aren’t showing you much in the way of repeat traffic, you might have problems with buyer remorse and rushed sales. If your sales metrics aren’t showing you much in the way of new traffic, you might be weak on leads, advertising, or other outreach.
You can go simple or advanced with this metric (or group of sales metrics): Either recording how many discrete activities an individual performs (calls, clicks on a site, emails, etc.) before buying, or tracking those individual events specifically instead of with a number, creating buying process timelines for each customer.
The latter takes more effort (and better tools), but will let you spot inefficiencies in your process, activities that consistently lead to sales, activities that kill sales, etc.
Overlooked by too many sales teams, customer satisfaction sales metrics can tell you a lot about the overall health of your sales team. Low customer satisfaction results in fewer return customers, negative word-of-mouth, and high rates of return.
High customer satisfaction retains customers, gives you positive word-of-mouth, and keeps return rates low. It also reduces the amount of work your customer service team needs to do, benefitting the company as a whole.
Rhys is a tenacious, top performing Senior Sales Recruiter with 11+ years of focused experience in the Digital Media, Mobile, Software, Technology and B2B verticals. He has a successful track record of headhunting top performing sales candidates for some of the most exciting brands in North America. He is a Certified Recruitment Specialist (CRS) and has expert experience in prospecting new business, client retention/renewals and managing top performing sales and recruitment teams. Rhys enjoys spending quality time with his wife, son, and two daughters, BBQing on a hot summer day, tropical vacations and cottaging.